Traders on the floor of New York Stock Exchange. / Bebeto Matthews, AP

by Staff and wire reports, USA TODAY

by Staff and wire reports, USA TODAY

NEW YORK (AP) -- Stocks continued a two-day slide Thursday on weak economic data and concern about the Federal Reserve's resolve to keep juicing the market.

The Dow Jones industrial average declined 46.92 points, or 0.34%, to 13,880.62. The broader Standard & Poor's 500 index fell 9.53 points, or 0.63%, to 1,502.42, and the tech-heavy Nasdaq composite index lost 32.92 points, or 1.04%, to 3,131.49.

The indexes have soared this year to their highest levels since the financial crisis, but may be ready to fall back to earth, said Kim Caughey Forrest, senior analyst with Fort Pitt Capital Group, a portfolio management firm in Pittsburgh.

"I think the market has gotten ahead of itself," she said. She said fourth-quarter earnings have generally met expectations, but only after those expectations were reduced when companies made dire projections in November and December.

European stocks were sharply lower a day after U.S. stocks sustained some of their steepest declines this year. A monthly survey of European executives showed that business activity in the European Union slowed in February, a strong signal that a downturn that began last year will continue into 2013.

Stock indexes in France, England and Germany finished the day down more than 1.5%.

Wal-Mart Stores rose after beating analysts' profit expectations in the fourth quarter. However, the biggest retailer warned of a slow start to the year. It gained $1.05, or 1.5%, to $70.26.

The company said after a strong start to the holiday season, the first three weeks of December were weak, and business has been volatile since then. Wal-Mart attributed some of what it is seeing to a delay in tax refund checks that have left people strapped for cash.

"Everybody's gotten a 2 percent pay cut, and people who file their taxes early are not getting a refund back in a timely manner," Forrest said.

Supermarket chain Safeway (SWY) was the biggest gainer in the S&P 500, rising $2.82, or 14%, to $22.95. Its jumped 13% in the fourth quarter, helped by higher gift and prepaid card revenue.

Electric car company Tesla Motors (TSLA) plunged after a day after reporting that its fourth-quarter net loss grew 10% on costs related to production of its new Model S. The stock fell $3.42, or 8%, to $35.12.

Asian stocks closed sharply lower. The sell-off began Wednesday afternoon in New York after the release of minutes from the Fed's latest meeting suggesting that some policymakers want to wind down bond purchases and other measures aimed at boosting the economy.

The minutes showed new divisions over the Fed's low-interest rate policies. There is no sign of inflation, yet there was more evidence that some Fred officials are ready to ease off the stimulus programs before the economy has fully recovered.

The Fed's bond-buying has been boosting markets by reducing the cost of borrowing for companies and investors, Forrest explained. When interest rates are lower, it's possible to do business cheaper even if a company isn't growing, she said.

"Thinking maybe interest rates will creep higher, this is a very chilling scenario" for the market, she said.

The yield on the 10-year Treasury note fell to 1.98% from 2.05% early Wednesday as demand increased for ultra-safe assets.

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